A state appeals court gave the city’s controversial DWI car-forfeiture policy a green light yesterday.

In a unanimous decision, a five-judge Appellate Division panel ruled the policy – which allows the city to seize an alleged drunken driver’s car when the person is arrested – doesn’t violate due-process procedures.

The policy had been challenged by the New York Civil Liberties Union, which sued the city on behalf of Staten Islander Pavel Grinberg, 28 – the second person to lose his car under the policy when he was arrested for drunken driving Feb. 21.

Grinberg, who tests showed had a blood-alcohol level of 0.11 percent, charged the seizure was illegal, excessive and unconstitutional because he hadn’t been convicted of a crime.

But the judges upheld an earlier decision by Judge Michael Stallman, who found “a strong public interest in withholding a car from a DWI defendant.”

NYCLU head Norman Siegel said he’d go to the Court of Appeals.

“We’re disappointed … but everyone knew all along this case would be decided in the state’s highest court,” he said.

Police Commissioner Howard Safir called the ruling “a great victory for the people of New York City.”

Since the forfeiture program began in February, police have seized 1,183 vehicles.

At the same time, the number of drunk-driving accidents in the city is down 18 percent – and the number of DWI arrests are down 22 percent.